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China will aid IMF bond scheme

China is ready to buy bonds issued by the International Monetary Fund (IMF) if the multilateral financial institution’s quota-based contributions fall short of immediate needs, Vice-Premier Wang Qishan wrote in a Friday article for the London Times newspaper.

It was the second time within a week that a senior government official had expressed the country’s willingness to buy IMF bonds.

Earlier this week, central bank deputy governor Hu Xiaolian said China was ready to support the IMF if it decided to raise capital through bond issuance.

In an article titled “G20 must look beyond the needs of the top 20”, Wang said the IMF should set the scale of contributions by per-capita GDP rather than the size of a country’s foreign exchange reserves.